1. U.S. and World Cotton Economic Outlook National Cotton Council 2003 Mid-Year Board Meeting Nashville, TN August 20-22, 2003 Prepared by: Economic Services National Cotton Council

2. U.S. Real GDP Growth

3. Civilian Unemployment Rate

4. Consumer Price Index, Apparel

5. U.S. Cotton Planted Area

6. U.S. Cotton Supply

8. U.S. Retail Cotton Consumption

9. Net Imports of Cotton Textiles

10. U.S. Cotton Mill Use Million Bales

11. Foreign Cotton Production & Use

12. U.S. Cotton Exports

13. World Cotton Ending Stocks

14. “A” Index, Spot 4134 and USNE

15. Cotton Stocks/Use (World less China)

16. Cotton Stocks/Use (World less China) vs “A” Index

18. December Cotton Futures Cents per Pound

19. Cotton Farm Price vs. NY Futures

20. Summary USDA’s exports are 69% of productionUSDA’s exports are 69% of production –Exports above 10.5 million bales will draw down stocks Continued pressure on mill useContinued pressure on mill use By historical measures, balance sheet suggests better prices, but there are limiting factorsBy historical measures, balance sheet suggests better prices, but there are limiting factors USDA’s exports are 69% of productionUSDA’s exports are 69% of production –Exports above 10.5 million bales will draw down stocks Continued pressure on mill useContinued pressure on mill use By historical measures, balance sheet suggests better prices, but there are limiting factorsBy historical measures, balance sheet suggests better prices, but there are limiting factors

21. Merchants Ginners Crushers Producers Cooperatives Warehouses Manufacturers